INTRODUCTORY The City Council of the City
of Columbia, Missouri, met for a special meeting at 6:10 p.m., on Monday,
September 22, 1997, in the Council Chamber of the City of Columbia, Missouri. The
roll was taken with the following results: Council Members CAMPBELL,
KRUSE, COFFMAN, HINDMAN, and JANKU were present. Members COBLE and
CROCKETT were absent. The City manager, City Counselor, and City Clerk
were also present. Mayor Hindman explained that
this special meeting had been called in order to adjourn to a closed meeting. Mr. Campbell made the motion
that the Council adjourn to a closed meeting to discuss legal causes of action
and litigation as authorized by Section 610.021 RSMo. The motion was
seconded by Mr. Kruse with the vote recorded as follows: VOTING YES: CAMPBELL,
KRUSE, COFFMAN, HINDMAN, JANKU. VOTING NO: NO ONE. ABSENT: COBLE,
CROCKETT. Motion passed.

The special meeting reconvened
at 7:10 p.m. with the roll recorded as follows: PRESENT: CAMPBELL,
KRUSE, COFFMAN, HINDMAN, JANKU. ABSENT: COBLE, CROCKETT. The
City Manager, City Counselor, and City Clerk were also present.

APPROVAL AND ADJUSTMENT OF AGENDA Mayor Hindman noted that
R150-97 would be added to the agenda. The agenda, as amended, was
approved unanimously by voice vote on a motion made by Mr. Campbell and a
second by Mr. Kruse.

NEW BUSINESSR149-97 Authorizing
an agreement with Freedom House II for construction and operation ofhousing
for the disabled and authorizing payment from contingency funds. The resolution was read by
the Clerk. Mr. Beck explained that this
issue had been discussed at the last Council meeting. The City had
been asked for assistance to make up a shortfall in funding a 12 unit apartment
facility for the disabled in Columbia. He said the Council had requested
the staff examine any alternatives that might be available. Mr. Beck
noted that he and Mr. Hancock had looked through the CDBG funds and other
various funds to see what could be utilized. In order for action to
be taken before September 30th, when the firm commitment on the grant expires,
the Council would have to look to funds that have already been appropriated
that can be approved by a resolution at tonight's meeting. Mr. Beck stated the Council
has some discretion on the appropriation of contingency funds, which are
about at year's end. He said it appeared the funding should ultimately
come from some type of housing affiliated funds the City already has in place. One
possibility is utilizing funds from the rental rehabilitation program, which
is separate from CDBG funds. He said this program had been initiated
some years ago in which the City made loans for rental rehabilitation purposes
and some of those funds are paid back. Mr. Beck said there was an accumulated
amount of about $108,000 in that special account. He said money from
the rental rehabilitation program had not been appropriated, and it would
take two Council meetings to enact an ordinance doing so. Mr. Beck reported this resolution
would authorize the agreement with Freedom House and, in turn, the City would
provide the $54,486.00 prior to September 30. He then explained that
the second bill on the agenda would transfer the rehabilitation program money
to the general fund account (contingency fund being a general fund account). Mr.
Beck said he was assured by HUD that this project could move forward if the
Council appropriates the needed money. In addition, Mr. Beck had also
been reassured by several groups that this type of housing is needed in Columbia. Mr. Kruse pointed out that
Mr. Beck's memo noted that removing these funds would prevent the City from
matching future HOME monies in the amount of $163,000. The memo said
if private funds were raised for the project, they could be put toward replenishing
the rental rehabilitation fund. Mr. Kruse understood the City could
not be assured that would happen. Mr. Beck said that was correct; however,
in discussions with HUD representatives, it was indicated there have been
situations where private funds have been raised to make up this type of shortfall. He
said there was no requirement that the loan would be paid back, or that any
effort would be made to do so. Mr. Janku asked how the City
would replenish the rental rehabilitation account. Mr. Hancock said
it was hoped that continued pay back performance on the loans would be received. He
said these funds get paid back in a couple of years, and that would be one
way to replenish the account and build it back to a good level. Mr.
Janku asked if general revenue and CDBG funds could be appropriated for a
matching HOME project. Mr. Hancock said they could not. Mayor Hindman was fearful
that the Freedom House II project might disappear altogether if the September
deadline is not met. He said the process would have to begin anew,
and there is no guarantee the money would be awarded to Columbia again. Diane Miller, Chairperson
of Freedom House, thanked the Council and staff for all of their hard work
and consideration. She said they would do their utmost to initiate
a fund raising project to provide some sort of pay back. She said this
project meant a great deal to a lot of people. Mr. Campbell said he would
vote in favor with some reluctance because, during his term in office, one
of the Council's priorities had been the attempt to help stabilize and enhance
the low income area north of Broadway. He said the fund that is to
be utilized was established for the rehabilitation program. Mr. Campbell
strongly urged that as much as possible of the money be returned so the Council
could continue to provide those loans to encourage home ownership and development
in the target areas of the City. Mr. Janku explained that
the funds to be utilized are pay backs from rental landlords who took out
loans years ago, but the funds now go to homeowners for rehabilitation. He
said there had been a turnaround of sorts as to the nature of the program. Mayor Hindman noted that
he had talked to Mrs. Crockett today and she had said she was very much in
favor of the project. The vote on R149-97 was recorded
as follows: VOTING YES: CAMPBELL, KRUSE, COFFMAN, HINDMAN, JANKU. VOTING
NO: NO ONE. ABSENT: COBLE, CROCKETT. Resolution declared
adopted, reading as follows:

B265-97 Appropriating
funds as an operating transfer from CDBG program income to the generalfund. The bill was given first
reading by the Clerk.

R150-97 Authorizing
an agreement with Farrel G. Pride and Midwest Environmental Technologies,Inc. The resolution was read by
the Clerk. Mr. Beck explained the terms
of the agreement. Mr. Coffman pointed out that
Mr. Pride and his company would not be able to bid for another contract with
the City. The vote on R150-97 was recorded
as follows: VOTING YES: CAMPBELL, KRUSE, COFFMAN, HINDMAN, JANKU. VOTING
NO: NO ONE. ABSENT: COBLE, CROCKETT. Resolution declared
adopted, reading as follows: